DMart shares slip 4% despite 19% profit jump; is it a buying opportunity?

DMart Share price: Shares of Avenue Supermarts Ltd declined 3.85 per cent to Rs 4,409.30 on Monday after the company reported its March quarter (Q4 FY26) results on Saturday, when markets were closed.

The stock opened at Rs 4,585.00 before slipping to an intraday low of Rs 4,393.80. The company’s market capitalisation stood at around Rs 2.90 lakh crore. The stock is currently trading below its 52-week high of Rs 4,949.50, while remaining well above its 52-week low of Rs 3,529.00.

Q4 FY26: Profit jumps 19 per cent YoY

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The company reported a consolidated net profit of Rs 656.59 crore in Q4 FY26, up 19.18 per cent year-on-year (YoY), compared to Rs 550.90 crore in the same quarter last year.

Revenue from operations rose 18.9 per cent YoY to Rs 17,683.86 crore, against Rs 14,871.86 crore in Q4 FY25.

Operational performance improves

At the operating level, EBITDA stood at Rs 1,211 crore, marking a 26.8 per cent YoY increase from Rs 955 crore in the year-ago quarter.

EBITDA margin expanded to 6.8 per cent in Q4 FY26, compared to 6.4 per cent in Q4 FY25.

Full-year FY26 performance

For the full financial year FY26, the company reported a net profit of Rs 2,969.86 crore, up 9.7 per cent YoY.

Management commentary

Anshul Asawa, Managing Director & CEO, said the company’s revenue in Q4 FY26 grew by 19.0 per cent, while profit after tax rose 16.9 per cent YoY.

He added that two-year-old DMart stores recorded growth of 10.8 per cent during Q4 FY26, compared to 8.1 per cent in Q4 FY25. Gross margins saw slight improvement and costs remained largely in line with business growth.

Asawa said geopolitical tensions led to a spike in consumer buying during March 2026, which normalised towards the end of the month. He added that the business has not witnessed any supply chain disruptions so far.

The company opened 58 new stores during the quarter and crossed the milestone of 500 DMart stores.

Brokerage views on Avenue Supermarts Ltd DMart

• Jefferies: Maintain Hold; target raised to Rs 4,500 from Rs 4,050
• Citi: Maintain Sell; target raised to Rs 3,650 from Rs 3,150
• CLSA: Maintain Buy; target raised to Rs 6,628 from Rs 6,583
• UBS: Maintain Buy; target raised to Rs 5,500 from Rs 5,200
• Goldman Sachs: Maintain Sell; target raised to Rs 4,000 from Rs 3,730
• Morgan Stanley: Maintain Overweight; target at Rs 5,188

Morgan Stanley said Q4 saw a slight margin miss, while like-for-like (LFL) growth at 10.8 per cent came ahead of estimates and was the highest in more than two years. The brokerage also noted that the business has not seen any supply chain disruptions so far and highlighted management commentary on a temporary spike in consumer purchases in March due to geopolitical tensions, which later normalised.